SHANGHAI: China stocks closed up on Friday to end the week higher, aided by gains for consumer firms, as Beijing moves to boost consumption further to tackle slowing economic growth.
The blue-chip CSI300 index rose 0.5 per cent, to 3,710.54, while the Shanghai Composite index rose 0.3 per cent to 2,823.82.
For the week, CSI300 was up 2.1 per cent, while SSEC gained 1.8 per cent.
China’s state planner said on Friday it will roll out a plan to boost disposable income this year and in 2020 to spur consumption as the economy slows, but it gave few details.
Leading a rise in the market, the CSI300 consumer staples index rose 1.3 per cent on Friday.
The strong gains also followed a raft of solid earnings reports by leading brands, including Tsingtao Brewery and Foshan Haitian Flavouring.
However, analysts expressed caution given various uncertainties at this moment.
The A-share market could continue to be range-bound until any signs of strong positive signals, amid global recession fears and lingering Sino-US trade tensions, Shanxi Securities said in a report.
US President Donald Trump said on Thursday that US and Chinese negotiators were holding “productive” trade talks and expected them to meet in September despite US tariffs on over $125 billion worth of Chinese imports taking effect Sept. 1.
Nonetheless, China on Thursday vowed to counter the latest US tariffs on $300 billion of Chinese goods but called on the United States to meet it halfway on a potential trade deal.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.38 per cent, while Japan’s Nikkei index closed up 0.06 per cent.
At 07:15 GMT, the yuan was quoted at 7.045 per US dollar, 0.17 per cent weaker than the previous close of 7.0333.
The biggest percentage gainers in the main Shanghai Composite index were DuZhe Publishing & Media Co Ltd up 10.06 per cent, followed by ZheJiang JiHua Group Co Ltd gaining 10.05 per cent and HPGC Renmintongtai Pharmaceutical Corp up by 10.03 per cent.
The biggest percentage losers in the Shanghai index were Junhe Pumps Holding Co Ltd down 10.02 per cent, followed by Grace Fabric Technology Co Ltd losing 7.94 per cent and Olympic Circuit Technology Co Ltd down by 5.34 per cent.
As of 07:16 GMT, China’s A-shares were trading at a premium of 30.67 per cent over the Hong Kong-listed H-shares.
Source: Economic Times